The Impact Of R & D Expenditure On Total Factor Productivity

National defense industry is an R&D and production department that performs the dual functions of military and economy and obtains the dual benefits of military and economy.China’s national defense industry is divided into different fields,including nuclear industry,shipbuilding industry,weapon industry,aviation industry,aerospace industry,electronic industry,etc.As a high-tech industry,national defense industry is the foundation of national defense modernization.It plays a vital role in a country’s technological progress and economic development.In this context,the production efficiency of military enterprises has become a research hotspot in recent years.According to the endogenous growth theory,R&D expenditure is not only one of the important factors to promote enterprise productivity and long-term economic growth,but also one of the important factors to improve enterprise total factor productivity.On the basis of previous relevant research,this paper first defines the concepts of R&D investment,R&D expenditure and total factor productivity,summarizes the relevant economic growth theories,and puts forward the impact mechanism of R&D expenditure on total factor productivity.Secondly,based on the financial data of listed companies under China’s top ten military industrial groups,this paper uses ackerberg caves Fraser method to calculate the total factor productivity of 62 listed military industrial enterprises.The results show that the average value of total factor productivity of the selected enterprises is 6.48,the maximum value is 8.11 and the minimum value is 2.48.From the perspective of vertical time development,the average value of total factor productivity of all sample companies from 2010 to 2020 showed an increasing trend year by year.From the perspective of horizontal industry comparison,the nuclear industry has the largest growth rate and the fastest growth rate from 2010 to 2020,with a growth rate of 16.93%;The average value of total factor productivity of ordnance industry is the largest,which is 6.58.Finally,using the calculated total factor productivity as the dependent variable and using a variety of panel data regression models,this paper empirically tests the effect of R&D expenditure on total factor productivity of 62 listed military enterprises in China from 2010 to 2020.The main conclusions of empirical research include:(1)the empirical results of static panel data model and dynamic panel data model are robust.The coefficients of R&D expenditure variables are positive,indicating that they can promote total factor productivity.The coefficients of capital input variables and labor input variables are negative,indicating that there is substitution between capital,labor input and technological progress;(2)The coefficients of profitability variable and enterprise scale variable are positive,and the coefficient of enterprise asset structure variable is negative.This indicates that there is a positive correlation between the profitability and scale of enterprises and total factor productivity,and there is a negative correlation between enterprise asset structure and total factor productivity.That is,when other conditions remain unchanged,the higher the profitability of the enterprise,the larger the scale of the enterprise,or the lower the asset liability ratio of the enterprise,it indicates that the enterprise has more funds for scale expansion,the introduction of new production equipment and technology,and the increase of R&D expenditure,which is conducive to the improvement of total factor productivity;(3)The empirical study based on the sub sample data of aviation industry and ordnance industry once again confirms the promotion effect of R&D expenditure on total factor productivity and the inhibition effect of capital investment and labor investment on total factor productivity.According to the empirical results,this paper puts forward policy suggestions to improve the national defense industry R & D system,realize the R & D sharing of military and civilian enterprises in the industry,and enhance the operation ability of military enterprises from the macro,meso and micro aspects.